Rich and famous under scanner for buying Nirav Modi jewels in demonetisation year

A four-fold increase in the number of clients in the demonetisation year, 2016-17, has put the spotlight once again on Nirav Modi. Did his clients have an inkling of what's in store on November 8, 2016? From a mere 86 high networth individuals buying the Modi diamonds in 2015-16, to 340 the next year, the taxmen are investigating much more than the fugitive businessman's PNB scam of Rs 13,600 crore.

India Today TV has accessed a list of over 650 of India's Who's Who, many of whom bought crores worth of jewellery without a PAN card or couldn't explain the source of money when the taxman came knocking. In fact, as per an analysis done by the Income tax department, the unaccounted funds made up the majority of purchases done by the rich and the famous. A year before demonetisation, in 2015-16, Modi's clients bought jewellery worth nearly Rs 8 crore in white money and over 38 crore in black.

One of the high networth clients of Modi, Lawyer and Congressman, Abhishek Manu Singhvi, had denied that he bought jewellery worth Rs 6 crore using black money. Singhvi says he bought jewellery worth only Rs 1.6 crore making a cheque payment and not Rs 6 crore as is being made out. India Today TV spoke to several more of these high networth individuals, most of whom denied that they bought jewellery using unaccounted funds.

However, CBDT officials told India Today, "It is going to be difficult to ascertain whether Modi actually sold the jewels to these individuals since we don't have a statement by Modi. Notices have been sent to all those who did not have a PAN or used their black money. So while an exercise is being done of issuing notices, it may not result in much."

Jewellery worth Rs 12.85 crore was bought in cash in 2014-15 alone by the daughter in law of a senior Congress minister in the Siddharamiah government. She is the biggest purchaser of jewellery in cash from Nirav Modi and beats the mother of a business tycoon and one of the richest people in the world. The tycoon's mother bought jewellery worth a mere Rs 4 cr crore in cash between 2013-15. In fact, her daughter, who is married into the Nirav Modi family bought jewellery worth over Rs 17 crore in cash.

The list includs an Ahmedabad-based realtor bought nearly Rs 9 crore worth of jewellery of which nearly Rs 6 crore was bought in cash during 2014-15. A 2.5 USD billion technoforge major bought the Nirav Modi jewels for over Rs 5 crore in cash. The family of the promoters of a two-wheeler giant bought diamonds worth over Rs 4 crore between 2014-17 in cash.

On many occasions, the family has not quoted a PAN number. The promoters of a Punebased realty firm bought jewels using unaccounted funds to the tune of nearly Rs 3 crore in six years up to 2017. One of the promoters told India Today, "We got a notice last month and we can say that all funds are accounted for. But since the IT has slapped a notice we will most probably pay up because litigation is a long drawn process and requires that we deposit 50 per cent of the amount in question first. It's easier to pay than to litigate."

Amongst those not taxed in India is His Highness, The Aga Khan's name figures amongst those who bought jewellery worth over Rs 2 crore, all in cash.

A Congress leader on question of anonymity said, "The investigation was done by the Income Tax office in Mumbai over a year and a half ago. Why are notices being sent out after Nirav Modi has fled. What was the government doing all this while. In fact, there was a raid on the firm in 2011 as well and a huge discrepancy was revealed in the actual stock and the books. Had this been acted upon then, the scam would not have happened."